The case study looked at the credit card market in the United Kingdom specifically looking at the Barclaycard from inception to the year 2003. The case presented before us is an illustration of the nature of the credit card market in the UK from one perspective and in this analysis, information from third party sources was carefully selected an utilized to enable the improved strategy formulation through the triple loop (emergent) model. This model fundamentally looks at an outside the box solution to the organizations situation and not necessarily the tightening of controls of strategic change.

The task at hand is therefore to identify Barclaycards previous strategies post the 2003 period from external sources and to formulate a new overall strategy that the organization can adopt through the careful implementation of strategic management tools, their analysis and justification leading to a carefully developed action plan for the company.

The analysis that is undertaken in this paper follows the triple loop strategy framework whereby, it is the emergent approach to case analysis that focuses on outside the box organizational strategies. Grinyer and Spender (1979) suggested that when organisational performance is less than satisfactory, its managers will first respond by tightening controls. If this does not work they will then examine the structure and/or strategy and make changes finally if this is not sufficient adopt a complete organizational strategy overhaul.

The following steps were taken in the triple -loop learning approach to strategy:

1. Critical issues
Identifying problems•Barclaycard was carefully evaluated along its financial performance for a period not less than four years prior in order to evaluate its position in as far a bottom line performance was concern. •The organizational customer performance was then evaluated including the internal current and long term performance which provided vital input on the potential directional strategies the organization can take up. One of these was found in the low income market share where Barclaycard has not tapped into. •The environment surrounding the organization provides the opportunities and threats that the organization must deal with in order to penetrate the given markets and this is made possible by maximising the organizational strengths and minimising its weaknesses. Careful internal and external analysis was carried out revealing potential in adopting new technologies and pulling out of failing markets in certain regions.

2. Recommendations
Listing strategic recommendations to address problems•In order to put the extensive information that was gathered into perspective a well detailed SWOT analysis was developed followed by a comprehensive TOWS Strategy that enabled the formulation of various strategies that would deal with the diverse circumstances surrounding the organization. •These potential strategies were combined with those developed from the use of other tools such as the resource based model and the...

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Barclaycard: still the king of pla$tic?
Bernardo Bátiz-Lazo and Nurdilek Hacialioglu with contributions by Jarunee Wonglimpiyarat and Douglas Wood
The case study looks at milestones in the UK credit card market. It then focuses on how a longstanding market leader maintains a position of advantage and develops its business in a fast-moving industry undergoing significant change. There are many different strategic options open to Barclaycard, but which will be most suitable? Will all the options be acceptable, not only in terms of the likely risk and returns but also to the major stakeholders? Will the options be feasible? The case invites readers to evaluate and compare a range of strategic options and to choose the best way forward for Barclaycard.
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One of the biggest blunders in recent corporate history took place in 2003 when Matt Barrett, CEO of the Barclays Group, publicly stated: I don’t borrow on credit cards because it is too expensive . . . [I do] not recommend to anyone they chronically borrow on their credit card.1 He was the first bank executive who talked about credit cards openly – or bluntly. Although his comments led to a public relations fiasco, they also reflected growing concern around who should be in charge of advising consumers to borrow responsibly. Banks and regulators were concerned that credit card borrowing had doubled between 1999 and 2003...